Rick Olson: From a price perspective, we look at necessary price increases every year. First of all, market based and then fundamentally, we’ve had to be more cognizant of the commodity costs. Steel is one that has €“ that came down fairly substantially in 2022, but we do see it more as somewhat of a plateau so there’s a little bit of catch-up with some of our suppliers to take advantage of that, but it’s €“ we don’t see as much probably movements in steel as we go forward. And pricing €“ from a pricing standpoint, we’re still elevated above where we would normally be when we talk about normal realized price. Angie or Renee any other comment on the…
Angie Drake: Yes. Yes, I would just add to that by saying that we are beginning to see some of that inflation slowing a bit, but we are also looking for every opportunity to offset that inflation by our pricing actions or our productivity. We have done our best to include these inflationary items and our guidance going forward.
Tim Wojs: Okay. Okay. And then just the last one, just a kind of nitpicky modeling question. The other income line picked up pretty substantially year-over-year and sequentially. I guess what drove that? And how do you think about that line as you think about fiscal 2023?
Renee Peterson: Tim, this is Renee. So, as we look at other income, the two of the biggest factors that drove that variation year-over-year would be really the biggest one is the improvement that we’re seeing in the Red Iron JV income. As we return to a more normal level of field inventory, that does drive more activity through the Red Iron JV and as a 45% owner, we participate in that. So that’s one factor. And then there was a recovery associated with the Intimidator Group acquisition that was several million dollars. That also impacted that variance within the quarter.
Tim Wojs: Okay, great. Thanks guys.
Operator: Thank you. And our next question comes from the line of David MacGregor from Longbow Research. Your question, please.
David MacGregor: Yes, good morning everyone. Renee, thanks for all your help and your patience over the years. It’s really truly been a pleasure working with you. Angie, congratulations, best wishes for success. I wanted to just talk about inventories and the impact . You talked last quarter about excess raw materials and with inventory. And those inventories work their way through the P&L in 1Q, obviously. So, how much of a margin headwind did that represent? And what is the expectation for 2Q? It sounds like maybe raw material is not so much on the issue, but may still be, if you could just talk about that for us. Thanks.
Renee Peterson: Yes. As really, David, our sales cadence normalizes, what we’re seeing is we’re getting back into more of that normal pattern with inventory, really building inventory as we go into the spring and then seeing that depleted as we go through the season. If you look at sequentially from Q4, our inventory was relatively flat up a little bit, but we were encouraged because WIP was relatively flat. And just, I guess, stepping back and looking at it when we look at the mix of inventory, to your point, we still see a higher level of WIP inventory versus finished goods than we would ideally like. We do think as we work through the remainder of the year with the supply chain improving, that we’ll see that improvement, and we’ll see that mix normalize.
And our backlog is strong. So, we see strong demand and the pricing associated with that backlog is current. And when we look from an overall free cash flow conversion standpoint, we’ve embedded our thoughts around working capital and maintained our guidance around 100% conversion. So, you’re correct that we’re seeing some of that higher cost inventory as we go through the year that will work its way through the system, and we’ll see the benefit of some hopefully, lower commodities as well included in our guidance.
